A Picture of the Grain 
Industry 



BY W. J. SPILLMAN 




MARKETING GRAIN 
LESSON 1 



The American Institute of Agriculture 



A PICTURE OF THE GRAIN INDUSTRY 
Crop Areas - Buyi^ Areas - Future of the Industry 

By W. J. SFILLMAN 

Consulting Specialist, Bureau of Agricultural 
Economics, U. S. Department of Agriculture 



MARKETING GRAIN 
LESSON 1 




"Every Lesson by a National Authority" 



Confidential Edition 
Issued for Members 



* * 



Copyright, 1922 

THE AMERICAN INSTITUTE OF AGRICULTURE 

CHICAGO 



THE MAN WHO CONDUCTS THIS LESSON 



§> 



WILLIAM J. SPILLMAN 



It seems to be the fashion now-a-days for men's 
minds to concentrate on individual activities of 
life. One man's inclination is toward railroading, 
another is toward dairying, and another is toward 
mining. It is very apparent that the mind of W. J. 
Spillman has been very much concentrated on the 
grain industry. 

For several years owning a farm of his own in 
Missouri, Mr. Spillman has had the practical ex- 
perience of a farmer in finding the best market for 
his grain. In 1902, he was a specialist in the De- 
partment of Agriculture known as an agrostologist 
(an agrostologist is one who is a specialist in 
grains and grasses). His title was changed in 1905 
to "agriculturist," and this title he had until 
1915, when he became Chief of the Office of Farm 
Management of the U. S. Department of Agriculture. 
In this office he was more specifically concerned 
with the marketing of grain than with production. 

In the course of his work in the Department of 
Agriculture, he prepared many bulletins and super- 
vised the preparation of many others. All of the 
time his work was kept practical by the fact that he 
had the practical farm problems of a farm owner to 
settle almost every day. 

©cuesens ^ 



*HS> 1 



A PICTURE OF THE GRAIN INDUSTRY 



The Office of Farm Management was later merged 
with other departments, and now the work formerly 
conducted by the Office of Farm Management is con- 
ducted by the Bureau of Agricultural Economics, of 
which Mr. Spillman is a member, 

SUMMARY OF WILLIAM J. SPILLMAN'S TRAINING AND EXPERIENCE 

EXPERIENCE: Consulting Specialist, Bureau of Agricultural Economics, D. S. 
Department of Agriculture, since 1921 

Associate Editor, "Farm Journal, ' ' 1918-1921 

Chief, Office of Farm Management, U. S. Department of Agriculture, 1915 
-1918 

Agriculturist, U. S. Department of Agriculture, 1905-1915 

• Agrostologist, U. S. Department of Agriculture, 1902-1905 

Professor of Agriculture, Washington State College, 1894-1901 

Professor of Science, Oregon State Normal, 1891-94; Vincennes, 1889-91; 
Missouri State Normal, 1887-89 

Fellow, A. A. A. S. 

President, American Farm Management Association 

MEMBER: National Academy of Science; Society for the Promotion of Agri- 
cultural Science; American Society of Agronomy; American Genetic 
Association 

AUTHOR: "Farm Grasses of the United States"; "Farm Science"; also 
various bulletins on agricultural subjects; contributor to scientific 
journals; editor, heredity section, "American Naturalist, " 1908-15 

EDUCATION: B. S., University of Missouri, 1896; M. S., University of 
Missouri, 1889; D. Sc, Temple University, Philadelphia, 1907 



-r> 



GRAIN LESSON 1 



HOW TO STUDY THIS LESSON 

You may not have realized that the grain in- 
dustry is so huge and complicated as it is, unless 
you already know most of the facts in this lesson. 
From the study outline, you will see that there are 
11 parts, but do not be misled by this number. A 
separate part is devoted to each of the grains, and 
that is why so many divisions are made. 

First. Master Part I 

Part I is, in a way, a review of some of the 
things you learned in Lesson A, but with these facts 
applied specifically to the grain industry. 

Second, Familiarize Yourself with Wheat 

Part II is devoted to the world's most important 
bread crop — wheat. While wheat is not the largest 
crop in the United States, it is of more importance 
in world commerce than any of our other crops. 
And so you should spend a considerable amount of 
time on Part II. 

Inasmuch as the fluctuation in the price of 
wheat affects prices of many other farm products, 
it is particularly important that you know how the 
crops and the demand in certain foreign coupntries 
are likely to affect the price of wheat in America. 

When you have thoroughly mastered Part II, you 
will be able to explain just what competition we 
have in the world's wheat markets. 

Third, Familiarize Yourself with Our Largest Crop 

Part III is also exceedingly important, because 
it deals with the largest crop in the United States 
— corn. Corn is not so important in the world's 
commerce as wheat because a much smaller amount is 
moved from one country to another. Much the larger 
percentage of corn is consumed right where it is 
produced. And so you should be sure to have clear 
when you finish with Part III the entire situation 
of corn production and marketing in the United 
States. 



A PICTURE OF THE GRAIN INDUSTRY 



Fourth, Study Parts IV to VII 

Part IV treats of oats, and oats are somewhat 
similar to corn in that they do not enter into world 
commerce nearly so much as wheat. Foreign pro- 
duction of oats is not nearly so important as home 
production. And so you should pay particular 
attention to the facts given in Part IV about the 
production and marketing of oats in America. 

Practically the same thing is true of barley, 
treated in Part V; rye, treated in Part VI; and 
buckwheat, treated in Part VII. 

Fifth, Study the Flax Section 

There is one little paragraph in Part VIII that 
is, perhaps, more important than any other. This 
paragraph has the heading, "The United States 
Imports Flaxseed." In that paragraph you will 
learn of the countries from which we buy flaxseed. 
And you will understand, of course, that it is im- 
portant to keep informed as to the production of 
flaxseed in those countries and as to the imports 
from those countries in order to be able to judge 
as to the prospective change in price for flaxseed 
here in America. 

Sixth, Study Part IX on Rice 

Rice is one of the least important crops in 
America. However, there are many interesting facts 
in Part IX which treats not only of American pro- 
duction, but also of production in other parts of 
the world. One of the important facts to remember 
in this part is concerned with the consumption of 
rice. If you understand where rice is needed and 
where it is produced, you will be able to judge as 
to the probable future of rice growing in America. 

Seventh, Master Part X 

Do not slight Part X, because it gives you the 
beginning of a great deal of knowledge you will 
acquire in this course regarding the specific 
methods used in marketing grain. 

Eighth, Learn the Eating Habits of Nations 

Part XI provides you with the information that 
is so essential to understand in marketing of grain; 
that is, the eating habits of the various nations. A 
knowledge of the consumption of the various grains 



GRAIN LESSON 1 



in various parts of the world is exceedingly im- 
portant, and after you have gone farther with the 
course, you will appreciate this more than you do 
now. That is why you are warned to familarize 
yourself thoroughly with Part XI. 

Spend Four Study Periods on This Lesson 

You will probably accomplish most by attempt- 
ing to master Parts I and II first. Part I ought to 
be easy, because it is little more tha na review. 
But Part II will require more time. Certainly you 
ought not to spend less than an hour on these two 
parts. 

Probably you will find it better to consider 
together Parts III to IX inclusive. But it may be 
difficult to master all of these parts in one study 
period. The chances are, you will find it best to 
study all of them together for two study periods. 
That is, get all you can the first hour, and then 
finish the work in the second period. 

You ought to be able to master Parts X and XI 
in one period, because both of those parts are short. 
However, don't overlook the fact that both of them 
contain a great deal of very valuable information. 

How to Make Paper and Pencil Help You 

Use your paper and pencil in studying this 
lesson. Tabulate the figures here contained in 
different ways in an effort to make the situation 
more clear to yourself, and also to make it eaiser 
for you to remember the various facts. 

Many students find it of great value to write 
short compositions on various phases of each lesson. 
If you want to attempt to do that ,it would be a good 
idea to write one composition on Part I ; another, 
on Part II ; one on Part III ; one on Parts IV, V, VI, 
and VII taken together; one on Part VIII; one on 
Part IX ; one on Part X ; and one on Part XI . 

There probably will be no good use you could 
make of these compositions after they are finished, 
but the value you will get from writing them is that 
the facts will be more firmly fixed in your mind 
than if you have not written what you have learned. 
Do not send these compositions to the Institute. 

In writing such compositions, be sure to avoid 
using the same expressions found in the lesson. Use 
your own words always. 



A PICTURE OF THE GRAIN INDUSTRY 



STUDY OUTLINE 

A Picture of the Grain Industry 

PART I 

The Seven Crop Production Areas 11 

Relative Importance of the Seven Areas 13 

Regions of Dense Population 13 

Europe, the World's Greatest Buying Area 14 

Eastern North America, the World's Greatest 

Producing Area 14 

How Rainfall Influences Production 15 

PART II 

Wheat, The World's Most Important Bread Crop 16 

Western Europe the Biggest Producer, Yet the 

Heaviest Buyer 16 

India Produces the Third Most Wheat 18 

Australia Exports Much Wheat 18 

Central North America, the World's Second 

Wheat Area 18 

Argentina Exports Over 60% of Her Wheat 19 

The United States Leads the World in Wheat.. 19 
How the World War Affected the Commerce in 

Wheat 22 

Competition with North American Wheat Will 

Decrease 22 

Canada Destined to Lead the World in Wheat.... 23 
How the United States Has Increased in Wheat 

Acreage 24 

Why Low Prices May Be Expected for Wheat 25 

Where Wheat is Grown in the United States.... 25 

The Central States Grow Winter Wheat 26 

The Heart of Winter Wheat Production 26 

The One Great Spring Wheat Section 28 

PART III 

The United States Leads the World in Corn 28 

Most of Our Corn is Fed to Live Stock 29 

Eastern Europe is Second in Production 29 

Argentina is Our Biggest Competitor in 

Exporting Corn 31 



GRAIN LESSON 1 



STUDY OUTLINE — (Continued) 

India a Big Producer, But Not an Exporter 31 

Where Corn is Grown in the United States 32 

Which Farmers Sell Corn 33 

The Fluctuation in the Price of Corn 33 

Why Corn Growing is Likely to be More 

Profitable 35 

PART IV 

The United States Leads All Nations in Oats 36 

South America Now the Biggest Exporter of Oats 36 
Only Four States of the United States Grow 

Oats Extensively for Market 37 

Where Oats Yield the Best 37 

PART V 

Where Barley Is Grown 38 

Barley May Grow in Importance 39 

Why Barley Is Such an Important Crop 39 

Germany, the Greatest Importer of Barley. ... 39 

PART VI 

Why Rye Is Valuable in Some Sections 40 

Where Rye Is Grown in the United States 41 

Michigan Leads in Rye Acreage 41 

Rye More Important in Europe 42 

Two Nations Grow Most of the Export Rye 43 

PART VII 

Not Much Buckwheat Marketed 43 

PART VIII 

Flax As a Market Crop 43 

Why the Price of Flaxseed Fluctuates Violently 44 

Four States Produce Most of our Flaxseed 45 

Why Acreage Rises and Falls 46 

The United States Imports Flaxseed 46 

Where Flax Is Grown for Fibre 47 



A PICTURE OF THE GRAIN INDUSTRY 



STUDY OUTLINE™ (Continued) 
PART IX 

Four Sections Grow Rice 47 

India Is the Greatest Producer of Rice 48 

The United States Is Tenth in Rice Production. 49 

Development of the American Rice Industry.... 49 
How the United States Changed From an Importing 

to an Exporting Nation 50 

What Is the Future of Rice Growing in America? 50 

Orientals Eat the Most Rice 50 

America Not a Big Rice Consumer 51 

High Milling Charges Discourage Rice Planting. 51 

PART X 

Development of Methods of Marketing Grain 51 

How Transportation Built Up Marketing 52 

Handling and Storage Facilities Important.... 53 

Present Local Grain Handling Facilities 53 

Market Reports a Big Aid 54 

When Grading Began 54 

What Cooperation Has Done 55 

PART XI 

Per Capita Consumption of Edible Cereals 55 

The United States Uses More Corn and Oats 

Than Any Other Nation 56 



10 GRAIN LESSON 1 



INTRODUCTION TO LESSON 1 

With the background you have secured by master- 
ing Lessons A and B, you are prepared to proceed 
with the details of handling the marketing of grain. 

You learned in Lesson A of the various services 
that are commonly performed upon farm products as 
they pass from producer to consumer. In Lesson B 
you learned of the men who perform those services. 
And now, in this lesson, you will get a very definite 
understanding of the present situation in the mar- 
keting of grain. 

Be sure to keep in mind what you have already 
learned as you study each page of this lesson. 



A PICTURE OF THE GRAIN INDUSTRY 

Crop Areas - Buying Areas - Future of the Industry 

By W. J. SPILLMAN 

Since grain is an article of world commerce, it is 
difficult to understand the grain industry of any one 
country without a general knowledge of the grain in- 
dustry of the world. This lesson will, therefore, 
attempt to give a general picture of the world indus- 
try, followed by a more detailed presentation for this 
country, 

PART I. 

THE SEVEN CROP PRODUCTION AREAS 

There are seven general regions in the world, 
four in the Old World, and three in the New, in which 
the rainfall is sufficient to permit the development 
of agriculture on an important scale. These are as 
follows: (Refer to the world may, Fig. 1, in 
Lesson A. ) 

1. From the standpoint of world agriculture, by 
far the most important American rainfall area con- 
sists of that portion of the United States and Canada 
lying east of about the hundredth meridian. At 
present this area is less important than the one in 
Europe, but the two areas have about equal possibili- 
ties, and it will not be many generations until they 
will be equally important. The more southern situa- 
tion of this area as compared with the European, 
makes it the great corn growing center of the world. 

2. The southeastern part of Asia, and the 
islands adjacent thereto, make up the great rice 
producing area. This includes most of India, Siam, 
Cochin China, China, Japan, Sumatra, the Philip- 
pines, and numerous smaller islands, Java and 
Borneo. 

11 



12 GRAIN LESSON 1 

Rice is the dominant grain in this region, and 
takes the place largely of the bread making grains. 
This is the so-called monsoon area of southeastern 
Asia, and the heavy rainfall in many localities is 
due to the general prevalence during the warm half of 
the year of extensive wind currents from the warm 
ocean waters to the south and east toward the interior 
of Asia. 

In part of the area, the rainfall is so heavy as 
to interfere with farming and some crops cannot be 
grown. 

3. The third area, and by far the most important 
Old World production area from our standpoint, lies 
in western Europe and includes all of Europe except 
parts of Russia, Finland, Spain, and Norway. Here 
the great mass of the bread eating (Caucasian) races 
is concentrated. 

This entire region is so densely populated that 
its agricultural production is far less than is re- 
quired to meet its needs. For this reason, by far the 
greater part of the grains that enter into world 
commerce are sent to this region from the less popu- 
lous producing areas, 

4. The most extensive region of heavy rainfall, 
and the region of heaviest rainfall, in the New 
World, covers all of northern and eastern South 
America as far south as northeastern Argentina, its 
center of heaviest rainfall being the Amazon Valley, 
where occurs the largest region in the world with 
rainfall of more than 80 inches a year. The southern 
extension of this region in Argentina is an important 
grain producing region, and because of its small 
population, is one of the most important grain 
exporting regions in the world. A northern extension 
of this area covers Panama, Central America, and part 
of Southern Mexico. 

5. New Zealand and the eastern and southern 
coasts of Australia make up the fifth area. Although 



A PICTURE OF THE GRAIN INDUSTRY 13 

commerce, especially in dairy products. Taking 
New Zealand and Australia together, and comparing 
them with the nations of the world, they stand seventh 
in butter production, fourth in butter exports, and 
fifth in exports of cheese (1909-13 figures). 

6. The sixth area of sufficient rainfall lies in 
equatorial Africa, south of the great Sahara Desert. 
The tropical climate of this region has hitherto 
prevented the development of an important agriculture 
here. A part of the area has an over-supply of rain. 

7. The seventh rainfall area consists of a nar- 
row strip of land along the western margin of North 
America from Southern California to Alaska. A very 
narrow strip occurs also along the southern part of 
the coast of Chile in South America. 

Relative Importance of the Seven Areas 

Two of these seven areas (the African and the 
South American) and part of a third (Asian) lie in the 
tropics, and in parts of these sections rainfall is 
.too heavy for the best development of agriculture and 
the industries. Their possibilities are a matter 
largely for the future, although enormous amounts of 
human food and of useful fibres are obtained from 
them. The grain of these regions is principally 
rice. The possibilities in the way of the production 
of sugar, cocoanuts, bananas, and numerous other 
tropical fruits have hardly been touched. 

The three areas lying in the north temperate 
zone, and part of the southeastern Asian area, have 
from time immemorial been the home of civilized man. 
It is here that human population is largely concen- 
trated, and both agriculture and the manufacturing 
and transportation industries have had their greatest 
development. 

Regions of Dense Population 

The human population of the world is largely con- 
centrated in three of the great rainfall areas men- 



14 GRAIN LESSON 1 

tioned above. By far the greatest number of people 
live in the Asiatic rainfall area, in which there are 
five more or less distinct centers of population, 
namely, India, China, Japan, Korea (Chosen), and 
Java. This is the great rice eating population of 
the world. No bread is used by most of these people. 

Europe, the World's Greatest Buying Area 

The second center of world population is the 
European rainfall area. Caucasian civilization 
originated along the eastern edge of this area, and 
has had its most marked development in the western 
portion of the area. From this center it has radiated 
to all parts of the world. The population of this 
area far exceeds its food producing possibilities, 
and so food and raw materials for the industries are 
brought hither from all parts of the world. In fact, 
the greater portion of world commerce consists in 
transporting food and raw materials to this region 
and carrying the products of industry from it to other 
parts of the world. 

Eastern North America, the World's Greatest Pro- 
ducing Area 

The third great center of population is the rain- 
fall area of eastern North America. This region is 
not so densely populated as the two mentioned previ- 
ously, and has for more than two centuries been the 
principal outlet for emigration from the other two 
areas of dense population. 

The expansion of agriculture in this region dur- 
ing the past century has been one of the most remark- 
able phenomena in the history of the human race. It 
has far exceeded the growth in population in that 
area, for which reason it became the most important 
center in the world from which human food is exported. 
Its cotton is also the most important source of fibre 
in the world. But this agricultural expansion has 
already reached the point where its rate is very 



A PICTURE OF THE GRAIN INDUSTRY 15 

materially checked. At the same time, the population 
goes on increasing, so that the surplus for shipment 
to other parts of the world is diminishing, and in time 
may largely disappear. 

How Rainfall Influences Production 

The rainfall regions along the western margin of 
the American continents, particularly North America, 
are new, and their possibilities as yet are hardly 
touched. 

The southern portion of the rainfall area of 
eastern South America and all of the Australian and 
New Zealand rainfall areas are important agricultural 
regions with relatively small population and hence 
are important regions for production of human food 
for export. 

It is thus seen that rainfall and other elements 
of climate, particularly temperature, are at the 
foundation of agriculture and industry and that the 
distribution of rainfall and population over the 
earth are dominant factors in determining the course 
and character of world commerce. 

Table I. Comparative Importance of Various Grains 

The world's seven most important grains, in the 
order of quantity produced, are: (based on 1909-13 
figures) 

1. Wheat 5. Rye 

2. Corn 6. Barley 

3. Rice 7. Flax 

4. Oats 8. Buckwheat 

This order is different, however, for the United 
States, the order of production being as follows: 
(based on 1909-13 figures) 

1. Corn 5. Rye 

2. Wheat 6. Rice 

3. Oats 7. Buckwheat 

4. Barley 8. Flax 



16 GRAIN LESSON 1 

From the standpoint of the amount exported from 
the United States, the order of amounts is as follows : 
(based on 1909-13 figures) 

1. Wheat 4. Oats 

2. Corn 5. Rye 

3. Barley 6. Rice 

Part II. 
WHEAT, THE WORLD'S MOST IMPORTANT BREAD CROP 

There are three important wheat producing regions 
in the Old World and three in the New World. 

The most important of all, is the region extending 
from southern Russia westward along the northern 
border of the Caspian, Black, and Mediterranean Seas 
to the Atlantic Ocean. It includes a small portion 
of northern Africa and has an extension of consider- 
able importance eastward into Siberia. 

Western Europe the Biggest Producer, Yet the 
Heaviest Buyer 

More wheat is produced in this area than in any of 
the other areas, but only the eastern half of it pro- 
duces a surplus, the western half of this area being 
the most important wheat importing region in the 
world. It not only buys the wheat from the eastern 
portion of this area, but it imports most of the 
surplus from all the other important wheat areas in 
the world. 

The countries in this area that produce a surplus 
of wheat (or rather did before the World War) are: 
Russia, Roumania, Bulgaria, and Hungary. Other 
important European wheat producing nations are: 
France, Italy, Germany, Spain, and England. But all 
of these, except Spain, are large importers, and 
Spain imports a small quantity. Belgium and the 
Netherlands also import most of the wheat their 
enormous populations consume. The same is true of 
Switzerland. 



A PICTURE OF THE GRAIN INDUSTRY 



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18 GRAIN LESSON 1 

India Produces the Third Most Wheat 

The next most important Old World wheat pro- 
ducing area is central and northwestern India. 
India is the third most important wheat producing 
country in the world. The population lives largely 
on rice and a considerable proportion of the wheat 
is exported. 

Australia Exports Much Wheat 

The third Old World wheat producing area is 
Australia. Around the southeastern margin of this 
island continent is a narrow strip of land eminently 
adapted to wheat production. The population being 
small, about 60% of the wheat produced is exported, 
thus making Australia one of the important exporting 
countries, although its production is only one- 
eighth that of the United States. 

There is a small amount of wheat produced in Japan 
and Manchuria, but it is consumed locally, and there 
is no important commerce in wheat between this region 
and other parts of the world, although some flour and 
wheat are imported from western North America. 

Central North America, the World's Second Wheat 
Area 

In the New World, by far the most important wheat 
producing area is in central North America along the 
western margin of the eastern rainfall area of that 
continent. This area extends northward into Canada, 
southward into northern Texas, and in middle 
latitude, eastward to the Atlantic Coast. 

Next to the great European wheat area, this is the 
most important in the world. As already stated, the 
production is here greater than the needs of the 
population, and much of the grain is exported, 
although by far the greater quantity of it is simply 
moved from the center of the continent to the region 
immediately eastward. 

The Columbia River Basin of the Pacific North- 
west is another small but important wheat producing 



A PICTURE OF THE GRAIN INDUSTRY 19 

region. Formerly, much wheat was produced in the 
Willamette Valley of Oregon and in the central basin 
of California, but the crop is less important there 
now than it was a quarter of a century ago, largely 
because of the development of more intensive forms of 
agriculture. 

Argentina Exports Over 60% of Her Wheat 

The third of the American wheat producing areas is 
in Argentina. While the amount of wheat produced 
here is less than one-fourth of that produced in the 
United States, the export of wheat is nearly equal to 
that of the United States, constituting 60.5% of the 
total production, while our exports (for 1909-13) 
were only 14.3% of our production. 

The United States Leads the World in Wheat 

Producing and exporting more than any other 
nation, (now that Russia is producing little) the 
United States is easily the leader of the world in 
wheat. It may be surprising to many to know that 
wheat is not the largest crop in the United States, 
however. It is exceeded in number of bushels pro- 
duced by corn. 

Practically all of the world's exported wheat is 
sent to Europe, the largest amount being taken by the 
United Kingdom. The second largest amount is im- 
ported by Germany, the third largest by the Nether- 
lands, and the fourth largest amount is taken by 
Belgium. 

So you see, America's principal export wheat 
market is represented by the United Kingdom, Germany, 
the Netherlands, and Belgium. There are some other 
countries that buy from us, but they also are largely 
in western Europe. 

Our present competition in selling to Europe is 
mainly from Argentina, Canada, and India. 



20 



GRAIN LESSON 1 




A PICTURE OF THE GRAIN INDUSTRY 



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22 



GRAIN LESSON 1 



How the World War Affected the Commerce in Wheat 

The principal effect of the European War upon the 
wheat industry was the entire elimination of Russia 
from world commerce. During the period immediately 
preceding the war, Russia and Siberia together ex- 
ported an annual average of 162 million bushels of 
wheat, 31% of their entire production. There was 
also a very large decrease in production in Roumania 
and in France, and a smaller decrease in Hungary, 
Bulgaria, and Italy. England greatly increased her 
production of wheat, but is now back practically to 
normal production. 

In time, all these nations, with the possible 
exception of Russia, should resume their normal rela- 
tion to the wheat industry. In fact, most of them 
have already largely done so. The future of the 
Russian situation is so uncertain that discussion of 
it would not be fruitful. It is possible that for a 
generation or more, Russia may remain segregated from 
the rest of the world's commerce, although there are 
also possibilities that she may, within that time, 
resume production and export. 

Table II. Rank of Nations in Wheat (Based on 
1909-13 figures) 

Production Exports Imports 

1. United States 1, Russia (pre- 1. United King- 

2. Russia (pre- war) dom 

war) 2. United States 2. Germany 

3. British India 3. Argentina 3. Netherlands 

4. France 4. Canada 4. Belgium 

5. Austria-Hun- 5. Netherlands 

gary 6. Roumania 



8 . Canada 



7. India 



Competition With North American Wheat Will 
Decrease 

Practically all but two of the great wheat pro- 
ducing areas of the world have been developed approxi- 



A PICTURE OF THE GRAIN INDUSTRY 23 

mately to the extent of their possibilities. These 
two are Canada and the United States. (This leaves 
Russia out of consideration.) 

Argentina in 1910-11 grew 14,514,000 acres of 
wheat. Her crop for 1920-21 was 14,817,000 acres. 
Her maximum, however, during the World War was 
17,875,000 acres. The production of wheat in 
Argentina will probably not increase materially in 
the future, but the population there is increasing 
rapidly, so that the export of wheat from that country 
will probably decrease rather than increase during 
the next generation. 

The wheat area in Australia in 1910-11 was 
7,372,000 acres; in 1919-20, it was 6,396,000* The 
maximum acreage during the World War was 12,845,00 
acres. 

There is little possibility of any further great 
extension of the wheat area in Australia and, as the 
population there is increasing, the export of wheat 
from Australia should be a less important factor in 
world commerce in future than it has been in the past. 

Canada Destined to Lead the World in Wheat 

The story of Canada is quite different. The 
average acreage of wheat in Canada in the years 
1907-10 was 7,420,000. In 1911-15 it was 11,700,000 
and in 1916-20, 16,970,000. It is claimed by some 
enthusiastic agricultural authorities in Canada that 
that country has 250 million acres of possible wheat 
land not yet put into cultivation. This is equal to 
the present total wheat acreage of the world. 

It is very doubtful whether this enthusiastic 
claim is fully justified, but even if there is one- 
fifth of this area still available, there is little 
possibility of a shortage in wheat production for one 
or two generations to come. 



24 GRAIN LESSON 1 

How the United States Has Increased in Wheat 
Acreage 

The following table shows the gradual increase in 
wheat acreage in the United States since 1866. There 
is only one check in the gradual and rapid increase 
and that occurred during the period of low prices in 
the latter part of the eighties. 

During the World War, under the influence of 
patriotic propaganda, the wheat acreage in this 
country rose in 1919 to the unprecedented figure of 
75,694,000 acres. This great increase unbalanced 
the agriculture of the country very seriously and we 
have now returned approximately to the normal 
acreage for our present period of development. 

Table III. WHEAT ACREAGE IN THE UNITED STATES 
5-YEAR ANNUAL AVERAGES 



Periods 
1866 - 1870 
1871 - 1875 
1876 - 1880 
1881 - 1885 
1886 - 1890 
1891 - 1895 
1896 - 1900 
1901 - 1905 
1906 - 1910 
1911 - 1915 
1916 - 1920 



Thousands of Acres 
18,076 
22,864 
31,886 
36,979 
35,882 
39,117 
48,989 
50,194 
45,766 
51,910 
58,685 



It is not possible to say just what the future 
wheat acreage of the country may be. The figures in 
the table, as they stand, do not indicate the near 
approach of a check in the increase of acreage, yet 
well informed agriculturists are of the opinion that 
we are approaching an era when this expansion of acre- 
age can not continue, at least at its present rate. 



A PICTURE OF THE GRAIN INDUSTRY 25 

W hy Low Prices May Be Expected for Wheat 

Certain possibilities of acreage expansion for 
wheat in Canada, and the probable possibility of con- 
siderable further expansion in this country, justify 
the assertion that for a good many years to come, the 
world's possibilities of wheat production will 
exceed the world's requirements for this cereal. We 
may, therefore, expect in the future occasional over- 
production and low prices for wheat. 

Fluctuation in production of wheat is accentu- 
ated by the fact that approximately one-half of the 
wheat area of the world is grown with less than 30 
inches of rainfall. In all regions with rainfall so 
low as this, periods of exceptionally light rainfall 
will occasionally reduce production very materi- 
ally. Therefore, we may expect to fluctuate be- 
tween over-production and under-production of 
wheat for many years to come. 

Where Wheat Is Grow n in the United States 

There is a small area in western New York which has 
always been an important wheat producing region 
because the soils of that region are eminently adapted 
to this crop. 

To the south of this in Pennsylvania, New Jersey, 
Delaware, Maryland, and Virginia, is another region 
where wheat has always been, and is yet, an important 
crop. Here, again, we have good wheat soils and very 
excellent climate for winter wheat, except that the 
rainfall is rather heavy. In spite of the develop- 
ment of more intensive farming near the great cities 
of the East , wheat has retained an important place in 
the agriculture of this region. 

The next wheat area westward covers Ohio, In- 
diana, and Southern Michigan, with outlying districts 
in Kentucky and Tennessee. The climate is here 
favorable to winter wheat with the exception of the 
last two mentioned states where it is rather warm for 



26 



GRAIN LESSON 1 



this crop. The crop fits in well in the rotation 
practiced and wheat has been an important crop here 
since transportation facilities first became avail- 
able. 




Fig. 4. THE STATES THAT BUY AND SELL WHEAT 

Compare this map with Figure 4, and you will see that although 
Illinois is second in production of wheat, she does not produce enough 
to meet her own needs. The same thing is true of Ohio 

The Central States Grow Winter Wheat 

We find a large acreage of wheat in western Illi- 
nois and adjacent parts of other states. If the 
soils of northern Illinois and Iowa were well 
adapted to winter wheat, it seems certain that this 
crop would occupy a much more important place than it 
does in the local agriculture. 

An extension of the Illinois wheat area runs up 
through the Missouri counties flanking the Missouri 
River. The loess soils along that river are pecu- 
liarly adapted to wheat. 



The Heart of Winter Wheat Production 

The greatest winter wheat area extends from east 
central Nebraska southward through central Kansas, 
western Oklahoma, overlapping to a slight extent 



A PICTURE OF THE GRAIN INDUSTRY 



27 




Fig. 5. THE PRINCIPAL WHEAT PRODUCING STATES 
Each dot represents the production of 200,000 bushels; the numbers 
in the states indicate the rank of states in order of production. Compare 
this map with Figure 5 



28 GRAIN LESSON 1 

into northern Texas. Wheat is a dominant crop here 
largely because the rainfall is somewhat light for 
corn. The relatively large acreage of oats in this 
section does not represent commercial production. 
The oats are needed as a supply crop because of the 
relatively small acreage of corn. 

The One Great Spring Wheat Section 

Passing now to the spring wheat country, we find 
the largest and most important spring wheat region in 
America in south central Minnesota, extending north- 
westward, taking in eastern South Dakota, western 
Minnesota, and practically the whole of North Dakota, 
with its greatest development in the Red River Val- 
ley of North Dakota. The climate here is eminently 
adapted to spring wheat. Oats are at home and are 
grown extensively as a supply crop, but most of this 
region is too far from market for oats as a commercial 
crop. Flax is an important crop here, as are also 
barley and rye, for reasons that will be mentioned 
later. 

Finally, we have the limited but important wheat 
growing region of the Upper Columbia Basin in the 
Pacific Northwest. About two-thirds of the wheat in 
this area is fall sown; the remainder being sown in 
the spring. 

Part III. 

THE UNITED STATES LEADS THE WORLD IN CORN 

There are four important corn growing regions in 
the world, and a few other regions where the crop is of 
some importance. First, and by far the greatest, is 
the central and eastern portion of the United States. 
This region produces 70% of the entire corn crop of 
the world. We export only 1.6% of our corn crop, and 
that goes chiefly to Europe, as do the corn exports 
of practically all other countries. 



A PICTURE OF THE GRAIN INDUSTRY 



29 



Table IV. Rank of Nations in Corn (Based on 1909- 

13 Figures) 
Production 



1. United States 

2. Austria-Hun- 

gary 

3. Argentina 

4. Mexico 

5. Roumania 



Export 

1. Argentina 

2. United States 

3. Roumania 



Imports 

1. United King- 

dom 

2. Germany 

3. Netherlands 

4. Belgium 



Most of Our Corn Is Fed to Live Stock 

The great bulk of our corn crop is condensed into 
animal products on the farms where the corn is grown. 
About 85% of our crop is used in this manner. Only 
18% of the crop ever enters commerce as corn, and of 
this, a large proportion is consumed by farm animals. 




FED TO CATTLE, 

ON FARMS 

15% 

AVERAGE PRODUCTION * 

(1912- 1921) 

2,816,672.000 BUSHELS 



Fig. 6. WHY WE EXPORT LITTLE CORN 
From this chart, you will see that most of the corn we produce 
is fed on farms. Our exports amount to ony 1.5% 

Ea stern Europe Is Second in Production 

The second most important corn region lies to the 
north and, west of the Black Sea and along the northern 
border of the Mediterranean Sea. In Europe, Hun- 
gary, Italy, Roumania, and Russia are the principal 



30 



GRAIN LESSON 1 




A PICTURE OF THE GRAIN INDUSTRY 31 

corn producers. Hungary and Italy import corn, but 
Roumania and Russia export considerable quantities 
of it. This is mainly because the standard of living 
of laborers in these countries does not permit them 
to eat much meat. The other nations of Europe are all 
importers of corn. 

A rgentina Is Our Biggest Competitor in Exporting 
Corn 

The third corn area is Argentina. The produc- 
tion of corn in that country is small, averaging 
175 million bushels for the five year period from 
1909-13; but the population is small, which permits 
the exportation of 66% of the total production. 
Argentina exports more corn than any other nation. 
This exportation to Europe, and occasionally to the 
United States, is made possible by cheap water trans- 
portation and the fact that the corn in Argentina is 
grown within a short distance of the point of export. 



CORN PRODUCTION AND EXPORTS OF 

THE UNITED STATES AND ARGENTINA 

YEARLY AVERAGE 1900-1920. 



UNITEO STATES 



□□□□annnnnnnana 
QaQnaaoaannnnana 
nannnnnnnnnnnnnn 
Qaaan 



Da 



Fig. 8 WHY ARGENTINA OUTSTRIPS US IN CORN EXPORTS 
Although we produce many times as much corn as Argentina, we 
use so much more that our exports (the black bag) are much less than 
those of the South American country 

India a Big Producer, But Not an Exporter 

Next in order of corn production is India, the 
average crop for that country for 1909-13 being 87 



32 



GRAIN LESSON 1 



million bushels. This corn is practically all con- 
sumed locally. India has twice as many cattle as the 
United States, and more than twice as many human 
beings, so that that country has need for all its corn. 

Small quantities of corn are grown in south- 
eastern and eastern Africa, and along the eastern 
coast of Australia. Small areas in Egypt and along 
the northern coast of Africa may be considered as 
outlyers of the southern European corn region. The 
only semi-permanent effect of the World War on the 
commercial corn industry was the elimination of 
Russia as a factor. 



DESTINATION OF 
CORN EXPORTS 

AVERAGE 1905-1914 




Fig. 9. U. S. EXPORTS 
The proportion of corn exports purchased by various countries is 
here graphically shown 

Where Corn Is Grown in the United States 

Corn is limited in its distribution northward by 
temperature and by length of growing season, the line 
of 66° mean summer temperature corresponding very 
closely with the northern edge of the corn growing 
region. 

Westward, the acreage of corn is largely limited 
by rainfall, there being very little corn west of 
where the mean summer rainfall is eight inches. Most 
irrigated lands are at too high an altitude for corn, 
while in the Southwest, alfalfa is a more efficient 



A PICTURE OF THE GRAIN INDUSTRY 33 

producer of forage, and this occupies the major por- 
tion of the acreage that might otherwise be devoted 
to corn. 

Throughout the territory to the eastward of the 
line of eight inches summer rainfall and south of the 
line of 66° summer temperature, corn is grown almost 
universally, the heaviest acreage being found in 
Illinois, Iowa, southeastern South Dakota, eastern 
Nebraska, central and eastern Kansas, central 
Oklahoma, western Ohio, and central Indiana. 

In other portions of the corn territory, corn 
frequently occupies a relatively larger proportion 
of the total crop area than it does in these regions 
of denser distribution. Throughout this territory 
corn is mainly a supply crop, being grown for the 
animals kept on the farm and to supply local markets. 

Which Farmers Sell Corn? 

The only sections of the country in which any 
considerable proportion of the crop is marketed is 
east central Illinois, near the great corn market of 
Chicago, and in northwestern Iowa and adjoining 
parts of other states. Sales in other parts of the 
country are mainly for local markets. 

The Fluctuation in the Price of Corn 

From 1866 to 1886 there was a rapid increase in 
corn acreage in this country. Settlement at that 
time was going on in the western Corn Belt states. 
But this was a period of falling prices. In 1885 the 
average price of corn on the farm in December, was 
only 33 cents, and this fall in price continued until 
1896. From 1886 to 1894 the low price of corn pre- 
vented further extension of acreage of this crop. 

' There was, in fact, a large increase in corn acre- 
age in the western portion of the Corn Belt, but there 
was a corresponding decrease in the eastern portion. 
Farmers found it more advantageous to devote their 
land to other crops. When the great panic of the 



34 



GRAIN LESSON 1 




Fig. 10. RANK OF STATES IN CORN PRODUCTION 
Each dot represents the production of 500,000 bushels; the number 
in the states indicates the order of rank in total production. Compare 
this with Figure 11 



"' 












CORN SOLD OR TO BE SOLD 
1919 


EACH DOT REPRESENTS 
500,000 BUSHELS 






CORHSOLDOR TO BE SOLD ^ Lr— -S 

AND PES CENT OF TOTAL CROP, 1919 


J ^^^~»V 


, ls~^c-~— — \-&&^ 


■••iiJiS^T! — 1 ( 


r~ "Mm-- si 




\ ^_^ «^i~~»^ • <s? 




CORN SOLO OK 10 
B£ SOLD— Coal. 




SUTI 


bosuns 


,',:', 


Ed 
Sj. 
ft . 
Colo 
Ki 
CiH 
fa.. 
Ah. 


SJB9J505 

5,067.706 
4,184,561 
3,973,23) 
3^37.481 
2J95.624 
2.170.411 
I&4.5II 
1 .0S.903 

13.161.725 


« 

24.0 
57 
94 

32.0 
5J 

62% 
361 

39: 
i; 


«t»te 


BUSHELS 


:::, 


STATE 


BOSKETS 


: u :. 


HI... 

nZ ! 

Ind .. 

Olio . 
S.D.H 


117.260,785 
106,347,801 
48,297,859 
26.862.498 
24,173.497 
20.016,300 


41 1 

28.7 
30 1 
16.9 
16.1 
290 


Mo .. 

Tt„.! 
Pa... 

Okb . 


18,016,300 
14.203.S7S 
13,125,467 

IOJ69.06S 
10.2S9.634 
8,609,269 


12.3 
23.8 
15.7 
9.6 
1K2 
16 


u s 


461,997,131 


I9« 



Fig. 11. ONLY A SMALL AMOUNT OF CORN IS SOLD 
By comparing this map with Figure 10, you will see that much 
more corn is produced than sold. Each dot on this map represents the 
same number of bushels as in Figure 10 



A PICTURE OF THE GRAIN INDUSTRY 35 

nineties occurred, this advantage disappeared and 
farmers went back to normal acreage of corn in 1895. 
From that time onward, the price of corn increased 
rather rapidly and the increase in acreage was re- 
sumed, although at a lower rate than had prevailed in 
the two decades following the Civil War, 

This increase continued to 1912, since which time 
there has been a slight but rather steady decrease in 
corn acreage. The large acreage in 1917 was due to the 
fact that there was an abandonment of 31% of the total 
winter wheat acreage from winter killing, a consider- 
able proportion of the land thus vacated being planted 
in corn. 

Why Corn Growing Is Likely to be More Profitable 

The fact that for the past 10 years corn acreage 
has remained steady or has decreased slightly, in the 
face of continually rising prices for corn, is a 
matter of great significance for corn growers in the 
United States. We have reached the approximate limit 
of easily available corn acreage ; but the demand for 
corn and corn products, including beef and pork, goes 
on increasing as population grows. 

It appears safe, therefore, to assume that, 
except for times of financial depression, corn 
must be a more profitable crop in the future than 
it has ever been in the past. And this can not 
be said with certainty of any other important 
crop grown in the United States. The corn grower 
is, therefore, in an exceptionally strong position. 

What effect the European corn borer, which, it 
appears certain, will invade the entire corn country 
in time, may have upon the profitableness of this 
crop can not, of course, be ascertained in advance. 
Indications are, however, that injury from this pest 
will not be very serious, though its presence will 
undoubtedly call for some modification in farm prac- 
tice, particularly in the matter of leaving corn 
stalks in the field all winter. 



36 GRAIN LESSON 1 

Part IV. 

THE UNITED STATES LEADS ALL NATIONS IN OATS 

There are two great oat growing regions in the 
Northern Hemisphere, and one small and two very small 
ones in the Southern Hemisphere. The most important 
oat region in the world is in Europe, and lies along 
the northern edge of the European wheat growing 
region. The crop has its highest development in 
central Russia, Roumania, Poland, Austria-Hungary, 

Germany, Denmark, the Netherlands, Belgium, northern 
France, and the British Isles. The only countries in 
this area that grow more oats than are needed for 
home use are Russia and Roumania. The World War 
eliminated Russia from world commerce. It reduced 
production in Roumania, but that country will doubt- 
less recover. The United States has the largest 
acreage of any one country, f ollowed by Russia, 
Germany, Canada, France, and Austria-Hungary. 

The second great oat area lies along the northern 
edge of the North American wheat growing region in 
the United States and Canada, both of which countries 
export small quantities of this grain. 

South America Now the Biggest Exporter of Oats 
In the Southern Hemisphere, Argentina is the 
principal producer of oats, although the production 
of oats there is only 52 million bushels as compared 
with 1,131 millions in the United States. The small 
population of Argentina, and cheap water transporta- 
tion, enables that country to export practically her 
entire crop. This places her in the position of the 
world's largest oats exporting nation. 

Very small acreages of oats are found in south- 
eastern Africa, southeastern Australia, and in New 
Zealand. In general, the oat crop of the world, at 
least in the Northern Hemisphere, is grown under 
climatic conditions slightly cooler than those best 
adapted to wheat and corn. 



A PICTURE OF THE GRAIN INDUSTRY 



37 



It will be observed that very few countries 
export any of this crop. Since the elimination of 
Russia, Argentina stands first in oat exports, the 
average for the years 1911-13 being slightly greater 
than the average total production for the years 
1909-13. All of the importing nations are in Europe. 
England, France, Switzerland, Germany, Netherlands, 
Italy, and Belgium are the leading importing nations. 

Table V. Rank of Nations in Oats (Based on 1909- 
13 figures) 

Production 

1. United States 

2. Russia (pre- 

war) 

3 . Germany 

4. Canada 

5. France 

6. Austria-Hun- 

gary 



Exports 



I mports 



1. Russia (pre- 1. United King- 



war) 

2. Argentina 

3. Netherlands 

4. Germany 

5. Canada 

6. United States 



dom 

2. Netherlands 

3. Germany 

4. France 



O nly Four States of the United States Grow Oats 
Extensively for Market 

While oats are widely grown in the United States, 
they are grown extensively for market only in 
Minnesota, Wisconsin, Illinois, and Iowa. The large 
acreage of oats in those states is due in part to the 
poor adaptability of some of the soil to wheat and its 
excellent adaptability to oats, but more particularly 
to the presence of great market centers. 

Where O ats Yield the Best 

The fact that the western Mountain states produce 
much larger yields of oats of much greater weight 
per bushel than other sections of the country, 
would appear to justify the statement that manufac- 
turers of oatmeal might find it advantageous to locate 
their mills in that region. They could get their 
grains more cheaply, of better quality, and the manu- 
factured product would be sufficiently high in price 



38 GRAIN LESSON 1 

to make the cost of transportation to other sections 
of the country a negligible factor. The only diffi- 
culty at present apparently is the possible high cost 
of labor, machinery, building materials, etc. 

Part V. 
W HERE BARLEY IS GROWN 

There are three important barley producing 
regions in the Old World. The most important of 
these consists of southern and western Europe, and 
adjacent portions of the continent of Africa. The 
second is in northern India. The third is Japan. 

In the New World, barley is grown rather exten- 
sively along the northern edge of the Corn Belt, par- 
ticularly in the drier portions to the west ; and in 
the Mountain and Pacific Coast states. There is also 
a small production in Argentina and Chile. 

Barley has never been an important commercial 
grain in this country aside from its use by the 
brewing industry. Since the prohibition amendment 
to the Constitution, its use is limited practically 
to feeding live stock, in which use it is a substitute 
for corn. 

Table VI. Rank of Nations in Barley (Based on 

1909-15 figures) 
Production 

1. Russia 

2. United States 

3 . Germany 

4. Austria-Hun- 

gary 

5 . Japan 

6. Spain 

Corn, oats, and barley are widely substituted 
for each other in growing or maintenance rations. 
Because of this, the prices of these three cereals 
tend to fluctuate together. 



Exports 


Imports 


1. Russia 


1. Germany 


2. Netherlands 


2. United King- 


3. Austria-Hun- 


3. Netherlands 


gary 


dom 


4. India 


4. Belgium 


5. Roumania 




6. United States 





A PICTURE OF THE GRAIN INDUSTRY 39 

Barley May Grow in Importance 

In the greater portion of the oats producing 
territory of this country, barley produces more feed 
to the acre than do oats. It is probable, therefore, 
that as the shortage of corn begins to be felt, the 
acreage of barley in this country will increase and 
that it will ultimately become one of our major crops. 

Why Barley Is Such an Important Crop 

In Farmers' Bulletin, 968, H. V. Harlin says: 
"Barley should be more widely grov/n in the 
Northern and Western States. It is a protection to 
our grain supply, as it produces a good, non- 
glutinous flour and can be milled by wheat mills with 
little change of machinery. 

"It is an excellent grain feed for stock, being 
almost the equal of corn. It, however, competes with 
corn in few places, as it is mostly grown outside the 
limits of profitable corn culture. It produces more 
pounds to the acre than oats or wheat. If necessary, 
it can be seeded later than spring wheat, and hence, 
interferes little with the wheat acreage in the 
spring wheat region. It supplies the needed grain 
feed necessary for the increase of live stock, which 
sometimes must come with diversified farming in the 
areas where grain farming is now the only enter- 
prise. 

"The best lands for barley are well-drained 
soils that are not sandy. The best returns are 
obtained from early seeding. The best methods of 
preparation are fall plowing in the humid-spring 
region; disked corn ground on the great plains; and 
summer fallow in sections where the crop is winter 
seeded. The grain should not be thrashed too close, 
as broken kernels lower the market value. 

"The best-yielding varieties are Tennessee 
Winter in the humid-winter region, Manchuria and 
Oderbrucker in the humid-spring region, and Coast 
Hannchen, Mariout, White Smyrna, Chevalier, and 
Trebia in the arid region." 

Germany, the Greatest Importer of Barley 

Russia has, in the past, been the largest 
exporter, and Germany the largest importer of barley. 
The World War eliminated Russia. There is no other 



40 GRAIN LESSON 1 

important exporting nation, although India, 
Roumania, and Austria-Hungary in the years 1909-13 
exported an annual average of 17 million bushels 
each. Aside from Germany, the most important 
importing nations are: England, Belgium, the 
Netherlands, and France. 

It is of interest to note that Japan is a very 
large producer of barley, standing fourth in the list 
of nations, not counting Russia. But the barley 
produced in Japan does not enter world commerce, nor 
does this nation import or export any considerable 
quantity. 

Part VI. 

WHY RYE IS VALUABLE IN SOME SECTIONS 

Rye has three characteristics which render the 
crop of great value in certain sections of the world. 
In the first place, it is the hardiest of the winter 
cereals and can thus be grown farther north than any 
other of them. In the second place, it is indifferent 
to a wide range of rainfall, thriving under condi- 
tions either too wet or too dry for wheat. In the 
third place, rye is pre-eminently adapted to light, 
sandy soils, and to poor soils generally. 

The grain of rye is not so desirable as wheat for 
bread making purposes, and rye does not compete with 
wheat ordinarily except under conditions where one 
or more of the above-mentioned characteristics of rye 
give it a marked advantage over wheat. In feeding 
value, it is similar to barley and is relished by all 
farm animals. 

Rye is valuable as a pasture plant for early 
spring. Another very important use to which it is 
put in this country is as a green manure crop, 
particularly on light soils in fruit and vegetable 
growing regions in the East. It hardly has a rival 
in the northeastern quarter of the United States as a 
winter crop for this purpose. 



A PICTURE OF THE GRAIN INDUSTRY 41 

Where Rye Is Grown in the United States 

The principal centers of rye production in the 
United States are eastern New York adjacent to the 
western boundary of Massachusetts, where there is an 
extensive area in which rye is very commonly grown. 
Considerable rye is also grown in the wheat growing 
country of western New York. Central and north- 
western New Jersey and eastern and southern Penn- 
sylvania constitute an important rye growing region, 
particularly the region about Trenton, N. J. From 
here, the crop extends down the valleys of the 
Appalachian Mountain system into northern Georgia. 

Michigan Leads in Rye Acreage 

Rye is an important winter crop throughout 
nearly the whole of the Southern Peninsula of 
Michigan. It is somewhat less important in northern 
Indiana, in western Ohio, north central Kentucky, 
and central Tennessee. 

Michigan stands first in rye acreage, with 
660,000 acres harvested in 1920. Wisconsin and 
Minnesota are practically tied for second place with 
about 480,000 acres each. Indiana is third, with 
310,000 acres. 

In Wisconsin, rye growing is concentrated more or 
less in three localities, one being along the eastern 
margin adjacent to Lake Michigan; another being in 
the south central portion of the state ; the third, 
that section of the state adjacent to Minneapolis 
and St. Paul. Around these two latter cities there is 
a very extensive development of rye culture in both 
Minnesota and Wisconsin. 

From there the crop extends westward and north- 
westward into the Red River Valley and westward to 
the center of North Dakota. Another branch extends 
through southeastern South Dakota, central and 
western Nebraska, into eastern Colorado and western 
Kansas. 

Smaller areas of rye are found in most of the 
Mountain states. 



42 GRAIN LESSON 1 

In the main, the crop is distinctly a northern 
crop. Its absence from New England is to be attrib- 
uted to economic conditions. In Pennsylvania, New 
Jersey, Michigan, Wisconsin, and Minnesota, where 
the largest development of the crop occurs, its 
presence is largely attributable to the fact that 
there are considerable areas of sandy soils in those 
states, more suitable to rye than to wheat. 

Like corn, oats, and barley, rye is a low-priced 
cereal, for which reason it does not constitute a 
very important commodity in world commerce. 

Rye More Important in Europe 

Rye is a much more important crop in Europe than 
it is elsewhere in the world, particularly in Russia, 
Poland, Germany, and Austria-Hungary. Russia before 
the World War produced more than 20 times as much rye 
as does the United States, the average for the years 
1909-13 being 791 million bushels. For the same 
period, the average crop of rye in Germany was 445 
million bushels; in Austria-Hungary, 164 million; 
and in Poland, 90 million. In general, the greatest 
development of the rye crop in Europe lies to the north 
of the great wheat growing region, which, in turn, 
lies slightly to the northward of the corn growing 
region, although overlapping it considerably. For 
the most part, the rye and oat growing regions of 
Europe are nearly identical. 

Table VII. Rank of Nations in Rye (Based on 
1909-13 figures) 

Production Exports Imports 

1. Russia 1. Germany 1. Netherlands 

2. Germany 2. Russia 2. Germany 

3. Austria-Hun- 3. Netherlands 3. Finland 

gary 4. Roumania 4. Norway 

4. Poland 5. Bulgaria 5. Denmark 

5. France 6. Belgium 6. Belgium 

6. United States 7. United States 7. Russia 

7. Spain 



A PICTURE OF THE GRAIN INDUSTRY 43 

Two Nations Grow Most of the Export Rye 

Only two nations export any material quantity of 
rye, Germany and Russia. Roumania, Canada, and the 
United States are the only other nations that export 
as much as a million bushels. The imports of rye are 
confined to those nations in Europe that do not pro- 
duce enough for their own needs. 

The World War practically stopped the export of 
rye. Germany will doubtless return to her former 
commanding position in respect to this crop. The 
Russian situation is not so hopeful. 



Part VII. 
NOT MUCH BUCKWHEAT MARKETED 

The most distinctive character of the buckwheat 
crop is its ability to thrive on poor land. The great 
bulk of the crop produced in this country is found on 
the poor uplands in the hill country of New York and 
Pennsylvania. The acreage of the crop in the United 
States has changed very little in the last 40 years. 
Except in the two states mentioned, it is quite 
unimportant as a market commodity. 

Part VIII. 
FLAX AS A MARKET CROP 

Flax produces two valuable products. By far the 
larger part of the world's acreage is grown for the 
seed. But in some parts of the world, particularly 
in Asia and Europe, it is grown for the fibre which 
occurs in the bark of the stem. In the United States, 
it is grown for seed because the production of flax 
fibre is practicable only where hand labor is 
abundant and cheap. 



44 



GRAIN LESSON 1 



Table VIII. Rank of Nations in Flax (Based on 



1909-13 figures) 

Production 



For Seed 



For Fibre 



Exports 

1. Argentina 

2. India 
3 • Canada 
4. Russia 



1. Argentina 1. Russia 

2. India 2. Austria-Hun- 

3. Russia gary 

4. United States 3. Belgium 

5. Canada 4. Poland 

5. France 

6 . Japan 

The fibre is used in making linen cloth, the word 
linen being derived from the Latin word for flax, 
"Linum." The seed is valuable chiefly for its high 
content (30% or more) of linseed oil, which is one of 
the best of the drying oils. Its principal use is in 
the manufacture of paints, varnishes, linoleum, etc. 
The cake left when the oil is extracted, is an 
exceedingly rich nitrogenous feeding stuff greatly 
relished particularly by cattle, and it is widely 
used as a means of balancing the dairy ration. Small 
quantities of it are also fed to sheep, hogs, and 
horses. 

The flaxseed crop illustrates well the economic 
position of a commodity which has only one use and for 
which there is no satisfactory complete substitute. 
Attention has already been called to the fact that 
the prices of corn, oats, and barley are always closely 
related because any one of these grains may be sub- 
stituted for the other within wide limits, the 
cheaper one having the preference. This prevents 
the price of any one of these grains from rising or 
falling much above or below the comparative level of 
the others. 

Why the Price of Flaxseed Fluctuates Violently 

This is not the case with flaxseed. When more 
flaxseed is produced than is sufficient to meet the 
demand for linseed oil, the price falls very rapidly, 



A PICTURE OF THE GRAIN INDUSTRY 45 

and even the resulting low price does not greatly 
stimulate the use of the commodity. 

On the other hand, if the supply is not sufficient 
to meet the demand, substitutes are largely lacking, 
and the price rises to very high levels. Moreover, 
these high prices do not materially reduce the demand 
for the seed. 

There are certain oils that, within narrow 
limits, can be substituted for linseed oil in most of 
its uses. They are the semi-drying oils, the prin- 
cipal of which are soy bean oil and sunflower seed 
oil. Twenty to 30% of soy bean oil may be substi- 
tuted for linseed oil in the manufacture of paints, 
varnishes, etc., without materially reducing the 
quality of the product. Somewhat smaller quantities 
of sunflower seed oil may also be used in a similar 
manner. But the amount of substitution thus possible 
is not sufficient to affect materially the influence 
of supply and demand on the price of flaxseed. 

There is thus very great uncertainty in the flax 
crop. In 1905 the average farm price of flaxseed on 
farms in the United States on December 1, was 84.4 
cents, the corresponding price in 1910 was $2,317. 
In 1919 it rose to $4.38, while a year later it had 
fallen back to $1.76. 



Table IX. 


UNITED 


STATES : 


PRODUCTION AND PRICE 


Year 




Bushels 




Price 


1902 




29,285 




$1.05 


1905 




28,478 




.84 


1910 




12,718 




2.31 


1912 




28,073 




1.14 


1915 




14,030 




1.74 


1919 




7,661 




4.38 


1920 




10,990 




1.76 


Four States Produce 


Most of 


Our 


Flaxseed 



Because of this wide fluctuation in price, there 
is very marked fluctuation in acreage of flax. The 



46 GRAIN LESSON 1 

crop in the United States is practically confined to 
western Minnesota, the two Dakotas, and eastern 
Montana. This area has an important extension into 
the adjacent province of Canada. A much less 
important producing area is found in eastern Kansas 
and western Missouri. 

Why Acreage Rises and Falls 

Flax is highly subject to certain fungous dis- 
eases, particularly when grown frequently on the 
same land. It thrives best on land newly put into 
cultivation, and in flax growing sections it is 
known pre-eminently as a new land crop. 

Much less new land is available now than for- 
merly, and the acreage of flax in general is smaller 
than it was a decade or so ago. On account of uncer- 
tainty of rainfall in the flax growing region, the 
yield per acre also fluctuates markedly. 

About a decade ago, the acreage of flax had 
fallen so low that the price had become very high. 
The principal users of linseed oil put on a vigorous 
campaign for the extension of flax acreage, result- 
ing in 1912 in a crop of 28 million bushels, as com- 
pared with a 13 million bushel crop in 1910. As a 
result, the price per bushel of the seed fell from 
$2.32 in 1910 to $1.15 in 1912, In 1920 the crop 
amounted to only 11 million bushels and the year 
before that it was less than 8 million bushels. 

Stabilization of production is a serious neces- 
sity in the case of this crop. The experience of 
flax growers has made them afraid of the crop, for 
which reason, it takes two or three years for high 
prices to tempt them to any material extension of 
acreage. 

The United States Imports Flaxseed 

At the present time, the United States is not 
producing enough flaxseed to meet our needs and 



A PICTURE OF THE GRAIN INDUSTRY 47 

imports on a considerable scale are coming from 
Argentina and Canada. Russia and India are also 
important exporters of flaxseed. 

Where Flax Is Grown for Fibre 

In the production of flax fibre, Japan is an 
easy leader, or was in 1918. There was a very heavy 
increase in the production of flax fibre in Japan 
between 1913-18. For the five-year average, 
1909-13, Russia produced much the largest amount 
of flax for fibre, in fact, her production was 61% 
of the world's crop. Russia was second in 1918, 
followed closely by Austria- Hungary. Then come 
Belgium, Poland, and France in the order named. 



Part IX. 

FOUR SECTIONS GROW RICE 

Rice is the world's largest cereal crop and is 
the great cereal crop of southeastern Asia and 
adjacent islands. Statistics are available for all 
the principal producing countries except China, 
Cochin China, and parts of India. The absence of 
statistics from China, which is undoubtedly one of 
the large producers of rice, must be kept in mind in 
reading the following comment on the rice crop. 

There are only three other localities in the 
world where rice production is of any importance, 
although in each of them the crop is insignificant 
compared to the position it occupies in southeastern 
Asia. These three localities are: the Nile Delta, 
the Valley of the River Po in northern Italy, and the 
United States. Small areas are cultivated in 
southwestern and southern Louisiana, southeastern 
Texas, east central Arkansas, California, and in a 
narrow fringe along the south Atlantic Coast. 



48 GRAIN LESSON 1 

Table X. Rank of Nations in Rice (Based on 
1909-13 figures) 

Production Exports Imports 

1. India 1. India 1. Dutch East 

2. Japan 2. French Indo- Indies 

3. Java and Madura China 2. Singapore 

4. Siam 3. Siam 3. Germany 

5. Korea (Chosen) 4. Singapore 4. Ceylon 

5. Netherlands 5. Netherlands 

Of the great producing countries in southeastern 
Asia, only three produce a surplus. These are: 
India (the world's largest producing nation), Siam, 
and Indo-China; all of them situated on the Bay of 
Bengal, or on the peninsula lying to the east of this 
Bay. China, Japan, the Philippines, Ceylon, and 
the Dutch East Indies (Java and Sumatra), all im- 
portant rice producing regions, are extensive 
importers. 

In this part of the world, rice takes the place 
of the bread grains and bread is practically unknown 
among the native inhabitants, 

India Is the Greatest Producer of Rice 

Remembering that statistics of production are 
not available for China, nor for Indo-China, one 
of the principal exporting nations, of the total 
world production of cleaned rice amounting to nearly 
111 billion pounds, India in 1909-13 produced over 
75 billions, or more than 67% of the whole. But of 
this total production, India exported only about 
6%, rice constituting the principal food of her 
natives. 

Japan stands second in production, with 14 
billion pounds, but imports 656 million pounds. 

China, which probably produces more rice than 
Japan, imports about 700 million pounds of this 
cereal. 



A PICTURE OF THE GRAIN INDUSTRY 49 

The United States Is Tenth in Rice Production 

Rice culture was introduced into South Carolina 
in 1694. By 1718, the south Atlantic Coast was 
producing nearly five million pounds of cleaned rice 
a year, about two-thirds of which was exported. The 
production of rice increased rapidly on the flood 
plains above salt water along streams flowing into 
the Atlantic Ocean until at the beginning of the 
Civil War the total production amounted to over 
100 million pounds annually, about half of which was 
exported. The Civil War almost destroyed the 
industry, and it was 15 years after the close of 
that war before rice culture on the south Atlantic 
Coast regained the commanding position it had 
previously occupied. 

Development of the American Rice Industry 

About 1885, the cultivation of rice began to 
spread rapidly on the level prairies of south- 
western Louisiana and southeastern Texas. Later it 
developed on a large tract of prairie land in east 
central Arkansas. In these localities, the nature 
of the land was such that the use of modern farm 
machinery was practicable in handling the crop. 
On the Atlantic Coast, the rice soils are so soft that 
most of the work must be done by hand. When horse 
power is used, the animals must wear large marsh 
boots. Heavy machinery can not be taken onto the 
land. 

In recent years California has become an 
important rice growing state. 

Since the beginning of the Civil War, until 
very recently, we have been importing large quan- 
tities of rice. But shortly after the beginning 
of the twentieth century, the development of rice 
culture had become so extensive in the Southwest, 
where production was considerably cheaper than 
on the Atlantic Coast, that overproduction was 
threatened and prices fell to the point where the 



50 GRAIN LESSON 1 

Atlantic Coast region was practically eliminated 
from rice production. During the period of high 
prices incident to the World War, there was a 
renewal of rice growing in the Carolinas, but fall- 
ing prices since the war have again practically 
eliminated this region as a producer of rice. 

How the United States Changed From an Importing 

to an Exporting Nation 

The high prices that occurred during the World 
War stimulated rice production in the United States 
enormously. Up to and including 1918, we were 
importing very large quantities. By 1919 production 
had risen to the point where the exports greatly 
exceeded the imports, since which time we have been 
a rice exporting nation. Since in exporting rice, 
we are in competition with the cheap labor of the 
Orient, the rice industry is far less profitable 
than when we were still an importing nation. 

What I s the Future of Rice Growing in America? 

Central California has proved to be excellent 
rice territory and shortly preceding and during the 
World War, there was a very extensive development 
of rice production in that state. 

The future of the rice industry is more or less 
uncertain. We have much more good rice land than 
can be profitably devoted to the crop. The demand 
is not enough to use as much rice as could be grown. 

Orientals Eat the Most Rice 

The Year Book of the Department of Agriculture 
for 1920, page 608, gives the following statistics 
relating to the per capita consumption of rice in the 
leading rice-using nations for which statistics are 
available. In the Orient, the per capita consump- 
tion of rice rises to about 280 pounds per capita. 
In the principal nations of Europe it stands at from 
about 10 to 17 pounds per capita. In the Netherlands 
for the years 1909-13 the figures show 50 pounds, but 



A PICTURE OF THE GRAIN INDUSTRY 51 

this is probably the result of a deficiency in sta- 
tistics. It is probable that a considerable propor- 
tion of the rice which the figures indicate was 
consumed in the Netherlands was re-exported to 
other nations in Europe. For the years 1914-18 the 
annual consumption in the Netherlands was only 17 
pounds. The figure for the United States is less 
than 10 pounds per capita. 

America Not a Big Rice Consumer 

The American people, except in the rice growing 
sections of the South, have never been great 
consumers of this cereal. One reason is probably 
the very general practice of American rice mills of 
removing from the surface of the rice grain the 
entire aleurone layer, which reduces the flavor of 
the grain and removes most of the protein it contains. 
From this country, the practice of polishing rice 
spread to the Orient. 

High Milling Charges Discourage Rice Planting 

When the rice grain is harvested, it is covered 
by a rough, flinty shell or hull which must be 
removed by a special milling process before the 
grain is marketable. 

The ownership of the rice mills of this country 
is concentrated in a few hands, and so the owners of 
the mills are in a position to take large toll and they 
have, at times, by their exactions, greatly dis- 
couraged the growing of rice. Cooperative milling 
may some day remove this obstacle. 

Part X. 
DEVELOPMENT OF METHODS OF MARKETING GRAIN 

Settlement of the Ohio and Mississipi River 
Valleys preceded by many years the development of 
transportation facilities. The lack of such 
facilities made it impossible for farmers to market 
most of their products. 



52 GRAIN LESSON 1 

They were limited practically to the production 
of what could be utilized on the home farm. Lack 
of transportation facilities led to the projection of 
very extensive systems of canals for the purpose 
of connecting interior points with the Great Lakes 
and with the Ohio and Mississippi rivers. 

How Transportation Built Up Marketing 

By 1832 the construction of these canals had 
become the dominant development of the region. 
But a few years later, railroads began to extend 
westward from the Atlantic Coast region into the 
Ohio Valley. The extension of railroad lines into 
this region during the middle decades of the nine- 
teenth century is one of the most remarkable indus- 
trial developments in the entire history of the 
human race. 

The presence of these railroads made it possible 
for the farmers in the interior to reach the markets 
of the world with their products. The export of beef, 
pork, wheat, and corn occurred faster than the 
world's needs for these commodities increased, and 
so an era of low prices prevailed, with consequent 
hardship for people on western farms. 

It was not until about 1895 that the world 
demand for the products of the Mississippi Valley 
began to exceed the supply, and the hard times of the 
previous half century began to give way to the 
better times that have prevailed since. 

This story is recited to show that transporta- 
tion facilities are the leading factor in the mar- 
keting of farm products. The railroads have now 
expanded into all portions of the country and have 
almost ceased further expansion. 

The Government subsidized many of the transcon- 
tinental lines by gifts of enormous tracts of lands. 
The income from the sales of these lands enabled the 
railroads to transport farm products very cheaply. 
But, beginning about the end of the first decade of 



A PICTURE OF THE GRAIN INDUSTRY 53 

the present century, this source of income had prac- 
tically been exhausted and it was necessary for 
transportation lines to obtain their income more 
largely directly from the goods transported. 

Since that time, there has been a gradual rise in 
the cost of transportation, followed by enormous 
increases during and following the World War. 
These increases in cost of transportation have 
thrown agricultural production more or less out of 
balance. Unless there is marked reduction in 
transportation costs within the next decade, there 
is bound to be more or less redistribution of the 
various agricultural enterprises. 

From what is said, it is clear that a course in 
marketing of farm products must cover quite fully 
the entire problem of transportation, and other 
lessons in this course will do this. 

Handling and Storage Facilities Important 

Next to transportation facilities, come facili- 
ties for handling the products, such as elevators, 
storage space, warehousing, and the like. These 
usually develop as the production of a product 
develops in a region. Full consideration of such 
facilities are a necessary part of a course in 
marketing, and some of the lessons in the course 
will be devoted entirely to this subject. 

Present Local Grain Handling Facilities 

Grain buying at local points is commonly divided 
between three types of elevator operators: 1. the 
individual owner; 2. the line elevator; 3. the 
farmers' cooperative elevator, 

The individual elevator is owned by one man or a 
company of men, and usually the ownership includes 
only one elevator. Line elevators are owned by a 
syndicate or large company that operates many ele- 
vators, usually located along one line of railroad. 



54 GRAIN LESSON 1 

Farmers' cooperative elevators are owned by 
corporations made up of farmers. One corporation 
usually owns only one elevator, and tnis elevator is 
maintained primarily for marketing the grain of the 
owners. 

In the development of the local elevator 
industry, individual owners and line companies came 
first. As a protest, largely against the line 
elevator, the farmer-owned companies came into the 
field. 

Line elevators are operated chiefly in new 
territory in the Central West. But it is common to 
see individual owned elevators, line elevators, and 
a farmers' cooperative in the same town, all three 
competing for the grain of the community. 

The operation of a local elevator will be dis- 
cussed in detail in later lessons. 

Market Reports a Big Aid 

The third important element in marketing is the 
development of organizations that will enable both 
buyer and seller to know what the proper price of any 
given commodity is at any time and place. The actual 
marketing of grain is involved here. One of the most 
important factors is the standardization of products, 
for without such standardization it is impossible 
for either buyer or seller to know the real market 
price of a commodity until it has reached its ulti- 
mate destination. 

When Grading Began 

It will be surprising to many farmers and dealers 
in grain to learn that the very first attempt at the 
grading of grains in the world took place at Chicago 
in 1857. This first attempt consisted merely in 
distinguishing two grades of red winter wheat, the 
one known as Red Winter and the other as No. 2 Red 
Winter. Up to that time, wheat had been merely 
"wheat," and corn merely "corn," without reference 
to its quality. 



A PICTURE OF THE GRAIN INDUSTRY 55 

It is easily seen that refinement in grading 
renders marketing possible on much lower margins 
than would otherwise be possible because the dealer 
knows more accurately the price he can afford to pay 
for a given sample of a commodity. Some of the most 
important lessons of this course will deal with the 
entire subject of standardization of farm com- 
modities* 

What Cooperation Has Done 

In recent years, the cooperative marketing of 
farm products has risen to prominence. The principal 
service to be rendered producers by cooperative 
marketing is in the dissemination of more intimate 
knowledge of the grades of farm products and of the 
relative value in the markets of the world of these 
grades. 

Cooperative marketing, when sufficiently devel- 
oped, can also prevent to a large extent the 
manipulation of markets in farm products, for a 
large and properly financed cooperative organiza- 
tion can market a commodity in an orderly manner; 
that is, as the commodity is needed for consumption. 
By thus keeping the ownership of the commodity in the 
hands of the producer until it is needed for con- 
sumption, the markets should tend to be steadier 
and each producer should come more nearly getting 
the true market value of his commodity. 

Part XI. 

PER CAPITA CONSUMPTION OF EDIBLE CEREALS 

In the per capita consumption of wheat, France 
leads, with Belgium a close second. Then follow 
Italy, the United Kingdom (England, Scotland, 
Ireland, and Wales) , and the United States. In the 
other countries of Europe and particularly in the 
Orient, the consumption is much lower because of the 
more extensive use of other cereals. 



56 GRAIN LESSON 1 

Germany leads in the consumption of barley, 
followed by Austria- Hungary, Belgium, the United 
Kingdom, and the Netherlands in the order named. In 
these countries, barley is used largely in the 
manufacture of beer. 

T he United States Uses More Corn and Oats Than 
Any Other Nation 

In per capita consumption of corn, the United 
States far outstrips any other country. The reason 
for this is that, in this country, by far the greater 
part of the corn crop is used for stock feeding. In 
the other consuming countries a much larger propor- 
tion is used directly as human food. 

The United States also leads in per capita con- 
sumption of oats. This grain is also used in large 
part as a feed for stock, particularly horses. 
Germany is a close second and France, a close third. 
Belgium and the United Kingdom follow next in order. 

Germany leads in the consumption of rye, followed 
by the Netherlands, Belgium, and Austria-Hungary, in 
the order named. 

In the order in which the cereals are consumed, 
wheat stands first in France, with oats a close 
second. In Belgium, wheat is first; oats, second; 
and rye, third. In Italy, wheat is first, with corn 
second. In the United Kingdom the order is: wheat, 
oats, barley. In the United States, corn leads, 
followed by oats and wheat, in the order named. Rye 
is the leading cereal in the Netherlands, followed 
closely by wheat, Oats leads in Austria-Hungary, 
followed closely by corn and wheat. In Germany, oats 
lead, with rye second, barley third and wheat fourth. 

Statistics are not available for the purpose of 
determining real secular trend in the per capita 
consumption of the various edible cereals. About all 
that may be said on this subject with confidence, is 
that there is a tendency for wheat to displace the 
other bread-making cereals when the price of wheat is 



A PICTURE OF THE GRAIN INDUSTRY 57 



not so high as to make substitutes decidedly cheaper. 

The enormous population in the Orient appears 
to be well satisfied with its rice, and there is no 
immediate prospect that any large amount of this 
cereal will be displaced by wheat. 



58 GRAIN LESSON 1 



NOW, WHAT ABOUT STANDARDIZATION? 

You will remember that in Lesson A you learned 
that standardization is usually the first marketing 
service performed upon crops. Consequently, the 
next lesson in this course will treat of this first 
marketing service. As a matter of fact, a very large 
part of the wonderful improvements in marketing farm 
products that have been wrought during the past few 
years, have been brought about by standardization. 

There is still much to be done, but marketing 
grain is a much more certain and profitable occupa- 
tion now than it was when grain was offered to buyers 
in a hit or miss fashion. 

Does standardization pay? 

Does the increased price pay for the work of 
grading? 

Should we have more grades of grain, or less? 

Who should determine standard grades? 

Can we have one set of grades that will apply to 
all sections of the country? 

Does grading have anything to do with our foreign 
trade 

Is standardization something that should be 
confined to manufactured goods? 

These, and dozens of other questions will be 
answered in the next lesson. And after mastering 
it, you will be prepared to take your first step as 
a real leader for better marketing in your community. 



A PICTURE OF THE GRAIN INDUSTRY 59 



GLOSSARY OF MARKETING TERMS 
USED IN THIS LESSON 



Inasmuch as a glossary is provided with each lesson, no attempt is 
made either to give complete definitions in each glossary, or to give all 
the possible meanings of each term when used in different connections. 

The definitions here given explain the meanings of the term as applied 
to marketing farm products, and more specifically the meaning as used in 
this lesson. 

It iB difficult to find in dictionaries satisfactory definitions of 
many marketing terms as used in a commercial sense. In fact, it would be 
difficult to find a definition for some of these marketing phrases in any 
other place except in this glossary. 



cooperative elevator, An elevator owned by the 
producers of grain, whose ownership is primarily 
for the purpose of gaining an advantage in market- 
ing their own grain. 

financial depression, A period in which loans 
are difficult to secure except upon the basis of 
liberal collateral and for short periods. Rates 
of interest on loans generally increase and buying 
in general is reduced. 

fluctuation, n. More or less violent changes ; 
usually used to refer to changes in prices of any 
commodity. 

green manure plant, A plant grown for the purpose 
of plowing under while green to fertilize and im- 
prove the physical condition of the soil. 

intensive agriculture, The growing of crops that 
require much labor, and that produce very large 
returns from a given acreage. The raising of grain 
only is usually considered to be "extensive" agri- 
culture. The growing of grain and the feeding of live 
stock when carried out on the same farm, constitute 
more intensive agriculture. Fruit growing and 
truck farming are intensive. 

line elevator. An elevator owned by a corporation 
that also owns many other elevators, usually all 
located along one principal line of railroad. 



60 GRAIN LESSON 1 



manipulation of markets. This term is used to 
refer to the actual or apparent influence over 
prices that may be exerted by a man or group of men. 
It is usually used to refer to an unfair or artifi- 
cial influence exerted primarily for the benefit 
of the persons exerting the influence. 

nitrogenous, adj . Containing nitrogen. As used 
in connection with crops, this usually describes 
a plant that contains a comparatively high percent- 
age of nitrogen. 

over production, n. When more is produced than 
appears to be wanted by the buyers of the country, 
the condition is referred to as over-production. 
This condition may be due to a bumper crop, to a 
decreased demand, or to increased acreage. Over- 
production usually results in lowered prices and is 
often followed by decreased production, resulting 
at times in under-production and rising prices. 

pasture plant, A plant used as pasture for live 
stock, such as blue grass, clover, alfalfa, etc. 

secular trend, A general movement in one direc- 
tion, determined by drawing a straight line through 
a broken line that wavers up and down, showing the 
general rise or fall, over a long period, of the 
quantity represented by the broken line. Thus, the 
secular trend of price after the civil war was down- 
ward till about 1895, upward after that time. 

stabilization of production, This phrase is used 
to refer to that condition when production is com- 
paratively uniform for a period of years. It is 
usually assumed that the quantity of production is 
very near to the actual demand for the product. 

supply crop, (the opposite of cash crop) A crop 
grown primarily to supply feed for the live stock 
raised on the same farm, or food for the farm 
family. 

under producti o n, n. When less is produced than 
appears to be wanted by the buyers of the country, 
the condition is referred to as under-production. 
This condition may be due to a partial crop failure, 
to an increased demand, or to insufficient acreage. 
Under-production usually results in rising prices 
and is often followed by increased production, and 
sometimes by over-production and falling prices. 

12-22-2M 



